Time Investments and Reboot Ventures have launched a new venture capital trust (VCT) in the UK to exclusively invest in successful and dynamic businesses run by commercially proven ex-military entrepreneurs.
The TIME:REBOOT VCT plans to capitalise on the growing number of ex-military personnel in the UK, currently estimated at around two million, after a reduction of the UK's armed forces.
With plans to raise up to £20m by April 2014, the VCT expects to deliver more than 70% of growth in the first five years for its portfolio companies, including the initial 30% income tax benefit, and double investors' returns within ten years, with a minimum investment of £3,000.
Around 50% of the money will be invested in established profitable companies, while the rest will back established businesses with strong revenues and compelling evidence to indicate significant future growth, with the potential for recurring profits within three years.
Time Investments managing director Nigel Ashfield said the VCTs currently have around £2.9 billion in funds under management, and will attract several investors due to its improving sector track record, strong tax benefits and the current bull market in small medium enterprises (SMEs).
TIME:REBOOT VCT fund manager Stuart Nicol said ex-military personnel possess a number of the qualities looked for in successful entrepreneurs, such as resilience under pressure; determination, discipline and adaptability.
''Our team have the necessary skills to identify the opportunities and we already have a strong pipeline of potential investments,'' Nicol added.
British Venture Capital Association director general Tim Hames said, ''TIME:REBOOT VCT is an excellent use of government tax relief and the kind of honest, innovative finance we need to grow our small businesses and make sure the best people are leading them.''
Managed by TIME Investments, the newly-launched VCT will receive investment advice from Reboot Ventures, and aims to provide a number of tax advantages for investors, including tax-free dividend payments and capital returns.